Spotlight

Indian equity markets are likely to remain cautious, with intermittent profit-booking possible following the sharp recovery witnessed over the previous four consecutive sessions. However, easing crude oil prices continue to offer some relief, with WTI crude stabilising around the $96–97 per barrel range, helping alleviate concerns over imported inflation and external-sector pressures.

Foreign investor flows have also shown signs of improvement, with sustained foreign inflows suggesting a potential shift from the persistent FII selling trend observed through much of October. The improvement in foreign capital flows, coupled with moderating crude oil prices, is providing additional support to domestic market sentiment.

Meanwhile, Asian markets are trading on a mixed note in early deals, with Japan’s Nikkei 225 declining by over 1%, while South Korea’s KOSPI is gaining more than 1%. Overall, softer crude oil prices, optimism surrounding tax-policy developments and improving foreign investor participation are supporting broader market sentiment. Nevertheless, investors are likely to remain cautious, with some consolidation and profit-booking possible after the recent sharp upward move.

Technical View 

Nifty 50 

Nifty 50 continues to witness sustained buying interest, strengthening its bullish momentum. The index has moved above its 20-day, 50-day and 100-day EMAs and is now approaching its 200-day EMA, placed around 23,904. The immediate resistance is positioned near the crucial 24,000 psychological level. A sustained breakout above 24,000 could open the way towards the 24,200 zone.
 
On the downside, the 23,600–23,500 zone is likely to act as the immediate support area. Holding above this range will be important to sustain buying interest and maintain the ongoing upward momentum. Overall, the near-term market outlook remains positive, with the bullish momentum likely to persist if the index sustains above the immediate support zone.

Bank Nifty 

Bank Nifty is trading just below its 50-day EMA while holding above its short-term moving averages, indicating a gradual improvement in the near-term technical structure. The immediate resistance is placed at 55,600. A sustained breakout above this level could strengthen upward momentum and extend the recovery towards the next resistance zone at 56,000.
 
On the downside, 55,200–55,000 represents the immediate support zone, followed by 54,600–54,400. Sustaining above the immediate support range will be crucial to maintaining the ongoing recovery, while a decisive breakdown could trigger renewed selling pressure. Overall, the near-term outlook remains cautiously positive, with a sustained move above 55,600 required to reinforce bullish momentum and support further upside.

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Analyst Certification: I/We, Ajith Kamti Research Analyst, authors, and the name subscribed to this report, hereby certify that all the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. NISM Research Analyst registration number – NISM-202500242249.